State budget deal already under attack

LANSING -- Michigan's fragile state budget agreement was reached in the middle of the night after months of sometimes painful give-and-take between lawmakers and Gov. Jennifer Granholm.

Shortly after the sun came up Wednesday, it was clear the negotiations and the pain aren't over.

Lawmakers already have introduced bills that would kill off the expanded 6 percent sales tax on services set to take effect Dec. 1. Many businesses consider the tax confusing and unfair, with some warning it will cause them to lose business to out-of-state competitors or have to leave the state themselves.

Businesses would pay about three-fourths of the new tax, which would bring in about $725 million a year, raising concerns that it could discourage growth in the service sector that Michigan desperately needs.

The Legislature could have its hands full dealing with the issue before a scheduled two-week break in mid-November. That doesn't leave much time to act.